THE QUARTERLY NEWSLETTER OF KOCH COMPANIES

APRIL 2012Discovery

Award-winning performanceand the National Cattlemens Beef Association.The Matador was also one of five finalists for the national version of that award.Matador Ranch has become a model for sustain-able ranching techniques that actually improve the environmental quality of the land while supporting an average of 2,500 cattle.Kochs Beaverhead Ranch in Montana is also an environmental award-winner. It has earned Wildlife Habitat Certification for natural resources stewardship. The Beaverhead, which covers more than 300,000 acres in southwestern Montana, was the first ranch in the nation to be honored with that certification. It was recertified in 2010.The Beaverhead Ranch has also been honored by the Montana Preservation Al-liance for maintaining the historical integ-rity of its many ranch buildings, including a log barn dating back to the 1860s. Together with Spring Creek Ranch, the original Koch ranch located in the Flint Hills of Kansas, all three Koch ranches have achieved one of the best safety records in the industry.

Combined, they total about 440,000 man-aged acres and support more than 15,000 head of cattle. Similarly, Georgia-Pacific has received the Two Chiefs Award from the Siuslaw Stewardship Group for innovative forest

and watershed restoration along the Oregon coast.That award was presented to GP last year by the U.S. Forest Service and the Natu-ral Resources Conservation Service. The Siuslaw National Forest, southwest of Portland, has benefitted from an active cooperation between local organizations and individuals concerned about envi-ronmental management.Corporate winners of this award are rare. Of the 23 organizations given the Two Chiefs Award last year, Georgia-Pacifics West wood and fiber operations group, based in Philomath, Ore., was one of only two corporate winners.

Safety firstAccording to the Association of Ameri-can Railroads there are nearly half a million freight cars transporting billions

of pounds of prod-ucts along more than 160,000 miles of U.S. track every year.Many of those products are hazardous materi-als, such as industrial chemicals, that require special handling and a

particular attention to safety.Last year, INVISTA was one of only three companies in North America to earn the highest award for safe shipping practices from the Association of Ameri-can railroads.

Since January 2009, Koch companies have earned a total of 459 local, state and national awards for safety, environmental excellence, community stewardship, in-novation and customer service.Given the broad diversity of Koch enterprises ranging from toilet tissue production and wine filtration to ranch-ing and refining the array of operational challenges facing Koch is substantial. Even so, Koch company employees have done an exemplary job of operating safely, remaining compliant, improving environmental performance and meeting customer needs.As Jim Mahoney, KIIs executive vice president for operations excellence and compliance has noted: Its easy to say that you are committed to excellence.

But the facts demonstrate that our employees have many, many accomplish-ments they can be very proud of when it comes to actual performance.Were not just talking about operational excellence. Were demonstrating it.Here are the stories behind just a few of those 459 awards.

Land stewardshipLast fall, the Matador Ranch in West Texas was honored with a prestigious regional Environmental Stewardship Award.That award was sponsored by the U.S. Department of Agricultures Natural Resources Conservation Service, U.S. Fish and Wildlife, Dow AgroSciences

For the second year in a row, KPL has won APIs highest safety and environmental awards.

Kochs Matador Cattle Company operates award-winning ranches in Texas, Kansas and Montana.

MBM Guiding Principle #2: Compliance Strive for 10,000 percent compliance, with 100 percent of employees fully complying 100 percent of the time. Ensure excellence in environmental, safety and all other

areas of compliance. Stop, think and ask.

Reprinted from

THE QUARTERLY NEWSLETTER OF KOCH COMPANIES

APRIL 2012Discovery

Award-winning performanceand the National Calemens Beef Association.e Matador was also one of ve nalists for the national version of that award.Matador Ranch has become a model for sustain-able ranching techniques that actually improve the environmental quality of the land while supporting an average of 2,500 cale.Kochs Beaverhead Ranch in Montana is also an environmental award-winner. It has earned Wildlife Habitat Certication for natural resources stewardship. e Beaverhead, which covers more than 300,000 acres in southwestern Montana, was the rst ranch in the nation to be honored with that certication. It was recertied in 2010.e Beaverhead Ranch has also been honored by the Montana Preservation Al-liance for maintaining the historical integ-rity of its many ranch buildings, including a log barn dating back to the 1860s. Together with Spring Creek Ranch, the original Koch ranch located in the Flint Hills of Kansas, all three Koch ranches have achieved one of the best safety records in the industry.

Combined, they total about 440,000 man-aged acres and support more than 15,000 head of cale. Similarly, Georgia-Pacic has received the Two Chiefs Award from the Siuslaw Stewardship Group for innovative forest

and watershed restoration along the Oregon coast.at award was presented to GP last year by the U.S. Forest Service and the Natu-ral Resources Conservation Service. e Siuslaw National Forest, southwest of Portland, has beneed from an active cooperation between local organizations and individuals concerned about envi-ronmental management.Corporate winners of this award are rare. Of the 23 organizations given the Two Chiefs Award last year, Georgia-Pacics West wood and ber operations group, based in Philomath, Ore., was one of only two corporate winners.

Safety firstAccording to the Association of Ameri-can Railroads there are nearly half a million freight cars transporting billions

of pounds of prod-ucts along more than 160,000 miles of U.S. track every year.Many of those products are hazardous materi-als, such as industrial chemicals, that require special handling and a

particular aention to safety.Last year, INVISTA was one of only three companies in North America to earn the highest award for safe shipping practices from the Association of Ameri-can railroads.

Since January 2009, Koch companies have earned a total of 459 local, state and national awards for safety, environmental excellence, community stewardship, in-novation and customer service.Given the broad diversity of Koch enterprises ranging from toilet tissue production and wine ltration to ranch-ing and rening the array of operational challenges facing Koch is substantial. Even so, Koch company employees have done an exemplary job of operating safely, remaining compliant, improving environmental performance and meeting customer needs.As Jim Mahoney, KIIs executive vice president for operations excellence and compliance has noted: Its easy to say that you are commied to excellence.

But the facts demonstrate that our employees have many, many accomplish-ments they can be very proud of when it comes to actual performance.Were not just talking about operational excellence. Were demonstrating it.Here are the stories behind just a few of those 459 awards.

Land stewardshipLast fall, the Matador Ranch in West Texas was honored with a prestigious regional Environmental Stewardship Award.at award was sponsored by the U.S. Department of Agricultures Natural Resources Conservation Service, U.S. Fish and Wildlife, Dow AgroSciences

For the second year in a row, KPL has won APIs highest safety and environmental awards.

Kochs Matador Cattle Company operates award-winning ranches in Texas, Kansas and Montana.

MBM Guiding Principle #2: Compliance Strive for 10,000 percent compliance, with 100 percent of employees fully complying 100 percent of the time. Ensure excellence in environmental, safety and all other

areas of compliance. Stop, think and ask.

Reprinted om

THE QUARTERLY NEWSLETTER OF KOCH COMPANIES DiscoveryAPRIL 2012

Pacific Chemicals and Koch Sulfur Products Company with Pinnacle Awards for chemical transportation safety.To receive the award, these com-panies had to successfully imple-ment prevention and corrective plans, and achieve a rate of zero non-accident releases for regulated hazardous materials shipments.Chemical transportation safety is critical, said Diane Duren, Union Pacifics vice president and general manager for chemicals.This is Union Pacifics opportu-nity to acknowledge and thank our customers for their continu-ing efforts to eliminate chemical releases from rail cars.The safe transportation of prod-ucts via pipelines has also resulted in prestigious awards for Koch Pipeline Company, L.P.Last year, the American Petroleum Insti-tutes highest safety awards, the Distin-guished Award for Outstanding Safety and Environmental Performance, were presented to Koch Pipeline.Koch Pipeline, which operates more than 4,000 miles of pipeline, has an enviable safety performance record. Its employ-ees recently celebrated 10 consecutive years without any safety incidents that resulted in time away from work. But the good news doesnt stop there.On April 9, API announced that it was once again honoring Koch Pipeline for outstanding performance.

For the second year in a row, KPL earned the Large Operator API Dis-tinguished Safety and Environmental Awards. KPL was the only award-winner in the large operator category.

Far and wideAwards like these have become the norm across all of Koch Industries.Last year alone, Koch